Summary all chapters

Summary all chapters Contemporary strategy analysis 12 th edition / 9781394251599  Robert Grant

Language: English

Pages: 61

Reading time: 180 min.

(With some personal (Dutch) college notes throughout) 1 / 4

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H1 Introduction Role of strategy in success (fig 1.1) 1.Goals that are consistent and long term 2.Profound understanding of the competitive environment 3.Objective appraisal of resources 4.Effective implementation Basis framework for Strategy Analysis Strategy is a link between the firm and its external environment, fundamental is the notion of strategic fit. This refers to the consistency of a firm’s strategy with the internal and external environment.The concept of strategic fit is one component of a set of ideas known as contingency theory.This theory postulates that there is no single best way of organizing or managing, it depends upon circumstances.

Strategy today: What is Strategy?

Strategy is the means by which individuals or organizations achieve their objectives. Why do we need strategy?-Strategy as decision support -Strategy as a coordinating device -Strategy as target Corporate and Business Strategy

Two major area’s of a firm’s strategy:

-Where to compete? Corporate Strategy -How to compete? Business Strategy Corporate Strategy: defines the scope of the firm in terms of the industries and markets in which it competes. Corporate strategy decisions include choice over diversification, vertical integration, new ventures and the allocation of resources between different businesses of the firm. Responsibility of the top management team and the corporate strategy staff.Business Strategy: concerned with how the firm competes within a particular industry of market. If the firm is to prosper within the market, it must establish a competitive advantage over its rivals. This area of strategy is also referred to as competitive strategy.Design versus Emergence Mintzberg (critic of rational approaches) distinguishes intended, realized and emergent strategies.Intended strategy: as conceived of by the top management team. More an outcome of negotiation and compromise among the many groups involved in the making process. 3 / 4

Realized strategy: the actual strategy that is implemented, is only partly related to that which was intended. Only 10-30% of intended strategy is realized. The primary determinant of realized strategy is Emergent strategy: the decisions that emerge from the complex processes in which individual managers interpret the intended strategy and adapt to changing circumstances.Strategic Management of Not-for-Profit Organizations Ook voor nonprofit organisaties is strategie belangrijk. Zie fig. 1.2 op blz 26!Summary -Strategy is a key ingredient of success. Successful strategies embody four elements: clear, long-term goals, profound understanding of external environment, appraisal of internal resources and capabilities and effective implementation.-Strategy is no longer concerned with detailed planning based upon forecasts; it is increasingly about direction, identity and exploiting the sources of superior profitability.-Developing a strategy for an organization requires a combination of purpose-led planning (rational design) and a flexible response to changing circumstances (emergence).-The principles and tools of strategic management have been developed primarily for business enterprises; however they are also applicable to guiding the development of non- profit organizations, especially those that inhabit competitive environments.

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